41 percent of people in India realize that they have life cover lesser than required: Survey
The Protection study reveals the worries of people in India and their financial preparedness to deal with uncertainties
At 78 per cent, concern over uncertainty is high across the country and has increased in the last four years. 83 per cent people living in metros feel uncertain about life as compared to 67 per cent people in non-metros, highlighting a considerable difference between the two.
Aditya Birla Sun Life Insurance conducted an online Protection Survey, which highlights the people's concerns and their financial preparedness for future. Major highlights are as below:
Child education is top priority; Stable income is biggest worry
According to the study, providing for child's education is the top priority trigger of uncertainty for Indians followed by living a healthy and active life. It was observed that while the highest area of concern amongst male respondents was their child's education (36%); women across the country are most concerned about protecting their health and having an active life (35%). The survey identified that the focus has largely shifted from rising prices to stability of jobs and health in the last 4 years. Stability of jobs and income is the biggest worry for men and women both.
Earning family members rise
In terms of preparedness to face any form of financial uncertainty, 76 per cent of the respondents are aware of the need to protect their family against uncertainties. The awareness is equal amongst metro and non-metro residents. Corroborating this fact, the survey reflected that in the last four years, the number of people earning per family has considerably risen. 51 per cent of the respondents now have 2 persons earning in the family as compared to 31 per cent in 2013.
Saving and investment rose
The survey also unveiled that the focus towards savings has witnessed a whopping rise in the last four years. With more inflow of money, the monthly saving of 25 percent or more of the monthly income for the respondents of the nation has seen over a two-fold growth. Along with savings, more people are investing close to 20 percent or more as compared to 4 years ago.
Financial preparedness escalates
The study states that more people in the country are planning for their retirement as soon as they start earning. The number has increased by 12 percent in the last 4 years.
As compared to 2013, more people are confident and completely prepared to face uncertainties as compared to 2013. However, a large number of the population are not completely prepared. 60 per cent of the respondents hold intent to purchase life insurance solutions as their preferred choice of financial investment.
Underinsurance remains the biggest trouble
As per research, the average life cover that an individual should have is just double the income which should ideally be 10 times of ones' income. The Survey unveils that 41 percent of people in India realize that they have life cover lesser than required; whereas another 50 percent feel that they have enough cover.
'Aditya Birla Sun Life Insurance online Protection Survey' was conducted among 1,540 people in the age-group of 22-50 years including both males and females. The study is a comparative study between the year 2013 and 2017, assessing the gradual shift of consumer sentiments around their future and how they plan to deal with these concerns from a financial perspective.